The Cook Islands government commissioned a report to review its financial services industry and to provide recommendations as to how that industry might best be developed last year. As a result of the report the government recently enacted the Financial Services Development Act 2009. This legislation establishes the Financial Services Development Authority (the “FSDA”). The statutory primary objective of the FSDA is “to encourage, promote and develop the Cook Islands financial services industry so as to achieve sustained growth in a manner which is economically beneficial, socially responsible and reputable.”

The Cook Islands offshore financial services industry dates back to the early 1980’s and it has a mature legislative, regulatory and trustee company infrastructure. However what it has never had is a centralized development and marketing organization singularly dedicated to the long term development of the Cook Islands as an international financial centre. Government, acting on the recommendations in the report, has now remedied that position and established the FSDA.

The primary functions of the FSDA will be:

• Strategic planning

• Advising government

• Liaising between government, industry operators and regulators

• Promotion of the financial services industry

• Development of marketing strategies

• Development of products and services

The FSDA board of directors comprises individuals drawn from both the private and the public sector and includes a regulatory representative from the FSC. Underlying the FSDA board will be an operational executive charged with the day to day operations of the FSDA.

Puai T. Wichman is managing director of GCSL Cook Island; qualified solicitor in both the Cook Islands and New Zealand; former President of the Cook Islands Trustee Companies Association; the member of the Asia Offshore Association.